If Consumers Decide to Be More Frugal and Save More

question 5

Multiple Choice

If consumers decide to be more frugal and save more out of their income,then this will cause

• A)a shift in the supply curve for loanable funds to the right.
• B)a shift in the supply curve for loanable funds to the left.
• C)a movement to the right along the supply curve for loanable funds.
• D)a movement to the left along the supply curve for loanable funds.

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Definitions:

Profit-Maximizing Price

The price at which a company can make the highest profit, where marginal revenue equals marginal costs.

Monopoly Model

A market structure where a single firm controls the entire market supply of a product or service, facing no competition.

Price

The monetary value assigned to a product or service, determined by various factors including supply and demand, cost of production, and market competition.

Economic Profit

The disparity between total monetary gains and overall financial outlay, accounting for both clear and obscure costs.